ChatGPT and Roblox reportedly set to face strictest EU DSA rules

The European Union is reportedly poised to subject OpenAI's ChatGPT and the popular gaming platform Roblox to the most stringent rules under the Digital Services Act (DSA). Commission spokesperson Thomas Regnier indicated to Reuters that a designation is “definitely possible” for these platforms.

Under the DSA, online services with over 45 million EU-based users are classified as very large online platforms (VLOPs) or very large online search engines (VLOSEs). These categories trigger specific regulations aimed at addressing the unique risks such platforms may pose to the safety of European users, including illegal content, ad transparency, and health and safety concerns.

The rules include creating user-friendly terms and conditions, designating a point of contact for authorities and users, and reporting criminal offenses. VLOPs and VLOSEs must also identify and assess systemic risks linked to their services. Non-compliance with these rules can result in penalties up to 6 percent of the platform's global annual turnover.

Currently, 21 companies operating various platforms in the EU, including X, Amazon, Apple, Microsoft, LinkedIn, and TikTok, are subject to these regulations since the DSA's enforcement in early 2024. Subsequent probes by the European Commission have led to penalties totaling nearly €900 million for X, Temu, and AliExpress.

Bloomberg reported that the two new additions to the designated list are expected to be confirmed by August. Sources cited by Bloomberg revealed that ChatGPT's search function will be designated as a VLOSE and Roblox as a VLOP. These platforms will have four months from the date of designation to ensure compliance with the EU law.

The DSA and the EU's Digital Markets Act have faced criticism from the US, which considers penalties under these laws a "novel form of economic extortion".